MIRA INFORM REPORT

Report Date :

4^th May, 2006

IDENTIFICATION DETAILS

Name :	HCL INFOSYSTEMS LIMITED
Registered Office :	806-808, Siddharth, 96, Nehru Place, New Delhi-110 019, India
Country :	India
Financials (as on) :	30.06.2005
Date of Incorporation :	17^th April 1986
Com. Reg. No.:	23955
TAN No.: (Tax Deduction & Collection Account No.)	DELH03832D
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing of Computer Systems and Computer Peripherals.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 19000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a leading Information Technology Company having satisfactory track records. Directors are reported as experienced, respectable and resourceful professionals. Their trade relations are fair. Payments are reported as correct and as per commitments. Information Technology industry and dot.com company has shown downward trend due to recession in U.S.A. and various other reasons. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	806-808, Siddharth, 96, Nehru Place, New Delhi-110 019, India
Tel. No.:	91-11-26444305/26464921/262112941/26489078/ 26418567-69/26430051
Fax No.:	91-11-26212687
E-Mail :	info@hclinfosystems.com
Website :	1. http://www.hclinfosystems.com 2. http://www.hclperipherals.com
Corporate Office :	E-4, 5 and 6, Sector XI, Noida - 201 301, Uttar Pradesh
Tel. No.:	91-118-4521193/0937/0917/4556438 / 4526518 / 6519 / 6993
Fax No.:	91-118-4523791/4556437 / 4525197
E-Mail :	cosec@hclinsys.com
Plants :	CHENNAI WORKS UNIT - I 299, Arcot Road, Vadapalani, Chennai-600026, Tamilnadu Tel. No. 91-44-24800156/24843566/24838316 Fax. No. 91-44-24834563 E-mail. pattabi@help.com/veera@help.com UNIT - II Shed 5, 6, Tiru-vi-Ka Industrial Estate, Guindy, Chennai-600032, Tamilnadu Tel. No. 91-44-22342815/16/22340165 Fax. No. 91-44-22340161 E-mail. rs@help.com PONDICHERRY WORKS · R.S. No. 34/4 to 34/7 and part of 34/1, Sedarpet, Pondicherry – 605111 · R.S. No. 105/4-5, Sedarpet, Pondicherry-605111 · R.S. No. 107/5,6,7, RS No. 108/10A, RS No : 110/3, 5,11,12 and R.S. No. 108/9 & 12, Sedarpet, Pondicherry – 605 111 · 299 (Old No. 158), Arcot Road, Vadapalani, Chennai – 605 111, Tamilnadu · Shed S5 & S6, Tiru-vi-Ka, Industrial Estate, Guindy, Chennai – 600 052, Tamilnadu · J. K. Towers, 100 Feet Road, Pondicherry - 605 013 · Spl-A2, Industrial Estate, Thattanchavadi, Pondicherry - 605 005 Tel. No. 91-413-2248287/2248284 Fax. No. 91-413-2249586 E-mail. sridhar@help.com
Sales and Support Centres :	· Shed 5, 6, Tiru-vi-Ka Industrial Estate, Guindy, Chennai-600032, Tamilnadu Tel. No. 91-44-22342815/22342816/22340165 Telefax. No. 91-44-22340161 E-mail. mktg_chn@help.com Mobile. No. 9840139847 · 306, Tulsani Chambers, Nariman Point, Mumbai - 400021, Maharashtra Tel. No. 91-22-22815471/22815472 Mobile. No. 9820456196 E-mail. mktg_bom@help.com · Building No. 8, Krishna Market, Kalkaji, New Delhi -110019 Tel. No. 91-11-26293957 Mobile. No. 9868150599 E-mail. mktg_del@help.com · No. 7, Race Course Road, Coimbatore - 641018 Tel. No. 91-422-2214933/2200375 Mobile. No. 9843036831 E-mail. mktg_blr@help.com · B-10, Indian Airlines Employees Colony, Begumpet, Secunderabad - 500003, Andhra Pradesh Tel. No. 91-40-27902912 Mobile. No. 9848022078 E-mail. mktg_hyd@help.com · 306, Tulsani Chambers, Nariman Point, Mumbai - 400021, Maharashtra Tel. No. 91-22-22815471/22815472 Mobile No. 9820456196 E-mail. mktg_bom@hclp.com · Building No. 8, Krishna Market, Kalkaji, New Delhi - 110019 Tel. No. 91-11-26293957 Mobile. No. 9868150599 E-mail. mktg_del@help.com Other sales offices located at :- Ahmedabad, Bangalore, Baroda, Bhopal, Chandigarh, Chennai, Cochin, Coimbatore, Guwahati, Hyderabad, Indore, Jaipur, Kanpur, Kolkata, Kozhikode, Lucknow, Madurai, Mumbai, Nagpur, Noida, Patna, Pune. Raipur, Ranchi, Thiruvanathapuram, Trichy, Vijaywada and Vishakapatnam.
Branches :	Located at :- A-10 & 11, Sector III, Noida, District Ghaziabad - 201 301, Uttar Pradesh

DIRECTORS

Name :	Mr. Ajai Chowdhry
Designation :	Chairman and Chief Executive Officer
Date of Birth/Age :	54 Years
Qualification :	Graduate in Electronic and Telecommunication
Experience :	33 Years
Date of Appointment :	01.03.1989
Name :	Mr. Ravi Thumboochetty
Designation :	Whole-time Director
Date of Birth/Age :	56 Years
Qualification :	Engineer from BMS College of Engineering – Bangalore
Experience :	28 Years
Date of Appointment :	01.05.1986
Name :	Mr. T. S. Purushothaman
Designation :	Whole-time Director
Date of Birth/Age :	65 Years
Qualification :	Engineering from Trichur Engineering College, Trichur
Experience :	41 Years
Name :	Mr. Rajinder Pal Khosla
Designation :	Director
Date of Birth/Age :	74 Years
Qualification :	Graduate from Emmanuel College, Cambridge (U. K.)
Experience :	40 Years
Name :	Mr. Subroto Bhattarchaya
Designation :	Director
Date of Birth/Age :	64 Years
Qualification :	Chartered Accountants
Experience :	39 Years
Name :	Mr. D. S. Puri
Designation :	Director
Date of Birth/Age :	55 Years
Qualification :	Commerce Graduate – Kolkata University
Experience :	32 Years
Name :	Mr. E. A. Kshirsagar
Designation :	Director
Date of Birth/Age :	63 Years
Qualification :	Chartered Accountants
Experience :	37 Years
Name :	Mrs. Anita Ramachandra
Designation :	Director
Date of Birth/Age :	49 Years
Qualification :	Management Graduate from Jamnalal Bajaj Institute
Experience :	25 Years
OTHER PERSONNEL:-
Mr. K. R. Radhakrishnan	Company Secretary
MANAGEMENTS :-
Mr. T. S. Purushothaman	Chief Operating Officer – India Operations
Mr. Ravi J. Thumboochetty	Chief Operating Officer – International Operations
Mr. Sandeep Kanwar	CFO & Executive Vice President
Mr. S. Pattabiraman	Executive Vice President
Mr. J. V. Ramamurthy	Chief Executive – O. A. Division
Mr. Yuvraj Bahadur	Executive Vice President
Mr. Raman Sethi	Associate Vice President
Mr. Sundararajan Srikanth	Vice President
Mr. Adhikari, Saurav	President
Mr. Mohan U. V.	General Manager
Mr. Subodh Kumar Sharma	Area Customer Engineer Manager
Mr. C. D. Murthy	Associate Vice President
Mr. M. P. Singh	Deputy General Manager
Mr. A. K. Jain	General Manager

MAJOR SHAREHOLDERS

Category	No. of shares	% of shareholding
PROMOTERS' HOLDINGS
Indian Promoters	20,441,222	61.13%
Foreign Promoters	--	--
NON PROMOTER'S HOLDINGS
Institutional Investors
Mutual Funds and UTI	2,172,129	6.50%
Banks, Financial Institutions and Insurance Companies	1,134,049	3.39%
FIIs	6,283,337	18.79%
	9,589,515	28.68%
OTHERS
Private Corporate Bodies	395,838	1.18%
Indian Public	2,918,104	8.73%
NRIs / OCBs	91,675	0.27%
	3,405,617	10.19%
TOTAL	33,436,354	100.00%

BUSINESS DETAILS

Line of Business :	Manufacturing of Computer Systems and Computer Peripherals.
Products :	Networking Products · Hubs · Switches · Access Products · Modules/converters Terminal Products · Turboterm · Graph Term · Multilingual Terminal Structured Cabling · Patch Cord · Patch Panel · Wall Outlet Peripherals · Monitor · Keyboards · Multi Media · Touch Screen Monitor/Kiosks
Exports to :	ASEAN, Europe, Japan and USA
Imports from :	ASEAN, Europe, Japan and USA

PRODUCTION STATUS

The company’s production Status for the year ended 30^th June 2005 was as under: -

Class of Goods	Units	Installed Capacity	Actual Production
Computers/Micro Processor Based Systems	Nos.	600000	448121
Data Graphic/Display Monitor/Terminals, Hubs, etc	Nos.	425000	406917

GENERAL INFORMATION

No. of Employees :

7000

Bankers :

Ø State Bank of India, New Delhi

Ø Canara Bank

Ø Bank of Baroda, New Delhi

Ø UCO Bank, New Delhi

Ø Canara Bank, New Delhi

Ø State Bank of Patiala, New Delhi

Ø Indian Bank, New Delhi

Ø State Bank of Saurashtra, New Delhi

Ø Standard Chartered Bank, New Delhi

Ø Societe Generale, New Delhi

Ø ICICI Bank Limited, New Delhi

Ø HDFC Bank Limited, New Delhi

Facilities :

Rs. in millions

SECURED LOANS

30.06.2005

30.06.2004

LOANS AND ADVANCES FROM BANKS

Cash Credits

53.007

--

FOREIGN CURRENCY LOAN

External Commercial Borrowings

55.461

158.915

Others

43.667

228.736

TERM LOAN

Foreign Currency

--

87.560

Others

400.000

215.159

TOTAL

552.135

690.370

a) Cash Credits along with non-fund based facilities, Foreign Currency Loans and Foreign Currency Term Loan from Banks are secured by way of hypothecation of stock in trade, book debts as first charge and by way of second charge on all the immovable and movable assets of the company. The charge ranks pari-passu amongst Bankers.

b) Term Loan in Indian rupees from a Bank is secured by way of hypothecation of all movable assets subject to prior charge in favour of Company’s bankers on book debts and stock in trade for working capital facilities.

c) Amount payable within one year from the Balance Sheet date was Rs. 499.128 millions (2004-Rs. 690.370 millions)

Rs. in millions

UNSECURED LOANS	30.06.2005	30.06.2004
Public Deposits	1.015	1.076
Interest Accrued and due	0.191	0.202
Short Term Loans and Advances:-
From Banks – Commercial Paper	250.000	--
Other Loans and Advances :-
From a Financial Institutions	5.972	14.674
Deferred Lease Obligations	3.861	7.393
Total	261.039	23.345

Banking Relations :	Good
Auditors :	Price Waterhouse Chartered Accountants
Address :	New Delhi
Associates/Subsidiaries :	· HCL Technologies Limited · HCL Global Alliance Limited · HCL Peripherals Limited · HCL Perot Systems Limited · OWNHCL Trust · Shri Sivasubramaniya Nadar Educational and Charitable Trust SUBSIDIARIES Ø HCL Infinet Limited (formerly-HCL Commerce Limited) Ø Infosystems Australia Pty Limited Ø FEC Infosystems Pte Limited, Singapore Ø FEC Distribution Pte Limited Ø Far East Computers (M) Sdn. Bhd, Malaysia Ø HCL Infosystems (Malaysia) Sdn. Bhd Ø Far East Computers Marketing (M) Sdn. Bhd Ø Infosystems (Bermuda) Limited Ø Infosystems (Europe) Limited Ø Infosystems (America) Inc.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
80,000,000	Equity Shares of	Rs.10/- each	Rs. 800.000 millions
500,000	Preference Shares of	Rs. 100/- each	Rs. 50.000 millions
	TOTAL		Rs. 850.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
167,181,770	Equity Shares	Rs. 2/- each	Rs. 334.364 millions
	Add : Shares Forfeited		Rs. 0.001 million
	TOTAL		Rs. 334.365 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.06.2005	30.06.2004	30.06.2003
SHAREHOLDERS FUNDS
1] Share Capital		334.365	328.960	319.096
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4019.143	3655.157	2945.437
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4353.508	3984.117	3264.533
LOAN FUNDS
1] Secured Loans		552.135	690.370	726.419
2] Unsecured Loans		261.039	23.187	333.826
TOTAL BORROWING		813.174	713.557	1060.245
DEFERRED TAX LIABILITIES		68.141	30.773	56.300
TOTAL		5234.823	4728.447	4381.078
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		523.757	491.231	484.880
Capital work-in-progress		9.121	1.262	10.574
INVESTMENT		1227.744	2805.988	2128.901
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1880.981	1612.589	890.478
	Sundry Debtors	3699.201	2945.444	2193.248
	Cash & Bank Balances	1458.265	446.189	433.843
	Other Current Assets	794.235	145.148	154.037
	Loans & Advances	320.606	259.601	832.568
Total Current Assets		8153.288	5408.971	4504.174
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	4172.428	3590.218	2308.625
	Provisions	506.659	388.787	438.826
Total Current Liabilities		4679.087	3979.005	2747.451
Net Current Assets		3474.201	1429.966	1756.723
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		5234.823	4728.447	4381.078

PROFIT & LOSS ACCOUNT

PARTICULARS	30.06.2005	30.06.2004	30.06.2003
Sales Turnover [including other income]	19595.727	15441.652	16660.374
Profit/(Loss) Before Tax	1488.703	1284.837	957.686
Provision for Taxation	161.0298	75.873	340.397
Profit/(Loss) After Tax	1327.675	1208.964	617.289
Export Value	470.088	422.736	651.031
Import Value	9276.299	6297.819	4480.835
Total Expenditure	18107.024	14156.815	15702.688

QUARTERLY

PARTICULARS	30.09.2005 [1^st Quarter]	31.12.2005 [2^nd Quarter]	31.03.2006 [3^rd Quarter]
Sales Turnover	4802.500	5501.000	6599.500
Other Income	67.100	24.100	51.600
Total Income	4869.600	5525.100	6651.100
Total Expenditure	4517.100	5243.100	6217.600
Operating Profit	352.500	282.000	433.500
Interest	0.600	11.000	12.900
Gross Profit	351.900	271.000	420.600
Depreciation	16.900	16.500	15.900
Tax	29.100	27.300	38.200
Reported PAT	297.500	220.900	345.000

200509 Quarter 1 - Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (421.70) million Cost of Sales (Net) Rs 4397.30 million Staff Cost Rs 283.90 million Administration, Selling, Repairs & Others Rs 257.60 million Tax Includes Provision for Current Tax Rs 24.00 million Deferred Tax Rs 8.40 million Fringe Benefit Rs 5.10 million EPS is Basic Status of Investor Complaints for the quarter ended September 30, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 03 Complaints disposed off during the quarter 03 Complaints unresolved at the end of the quarter Nil 1. The above results have been taken on record at the meeting of the Board of Directors of the Company held on October 19, 2005. 2. The Board of Directors at the above meeting has declared interim dividend of Rs 2/- per fully paid up equity share of Rs 2/- each for the Financial Year 2005-06. The Register of Members and Share Transfer Books of the Company would remain closed from October 24, 2005 to October 25, 2005 for the purpose of payment of interim dividend. 3. During the quarter ended September 30, 2005, 430020 equity shares of Rs 2/- each fully paid up were issued and allotted pursuant to the exercise of stock options under HCL Infosystems Ltd. - Employee Stock Option Scheme. 4. The auditors of the Company have carried out a Limited Review of the standalone unaudited financial results for the quarter ended September 30, 2005 in terms of Clause 41 of the Listing Agreement with Stock Exchanges. 5. Tax expense for the current quarter has been estimated subject to audit and final computation of various tax adjustments. It does not take into account tax issues disputed by the Company. 6. Consolidated results include results of ''HCL Infinet Ltd'', the wholly owned subsidiary of the Company. 7. The Company on a standalone basis operates in a single segment. 8. Figures for previous periods have been regrouped and rearranged to conform with the relevant current period classification.

200512 Quarter 2 - EPS is Basic Status of Investor Complaints for the quarter ended December 31, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 02 Complaints disposed off during the quarter 02 Complaints unresolved at the end of the quarter Nil 1. The above results have been taken on record at the meeting of the Board of Directors of the Company held on January 24, 2006. 2. The Board of Directors at the above meeting has declared second interim (quarterly) dividend of Rs 2/- per fully paid up equity share of Rs 2/- each for the Financial Year 2005-06. 3. In view of the sharp volatility in Rupee during the quarter, realised/unrealised exchange fluctuation differences accounted in accordance with AS 11, are disclosed separately. 4. During the quarter ended December 31, 2005, 285,465 equity shares of Rs 2/- each fully paid up were issued and allotted pursuant to the exercise of stock options under HCL Infosystems Ltd - Employee Stock Option Schemes. 715,485 Equity shares have been allotted under stock options during the half year 2005-06. 5. The auditors of the Company have carried out a 'Limited Review' of the standalone unaudited financial results for the quarter ended December 31, 2005 in terms of Clause 41 of the Listing Agreement with Stock Exchanges. 6. Tax expense for the current quarter has been estimated subject to audit and final computation of various tax adjustments. It does not take into account tax issues disputed by the Company. 7. Consolidated results include results of 'HCL Infinet Ltd', the wholly owned subsidiary of the Company and Microcomp Ltd., a subsidiary acquired by HCL Infinet Ltd during the quarter ended December 31, 2005. 8. As approved by the Board of Directors at their meeting held on October 19, 2005, the Company is in the process of merging the Office Automation and Telecommunication segment of the subsidiary, HCL Infinet Ltd., with the Company with effect from April 01, 2006 through a Scheme of Arrangement, subject to the requisite approvals and sanction by the Hon'ble High Court of Delhi. 9. The Company on a standalone basis operates in a single segment. 10. Figures for previous periods have been regrouped and rearranged to conform with the relevant current period classification.

200603 Quarter 3 - Other Income includes Other Income Rs 47.20 million Exchange Fluctuation Gain/(Loss)(Net) Rs 4.40 million Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (554.30)million Cost of Sales (Net) Rs 6105.00 million Staff Cost Rs 333.80 million Administration, Selling, Repairs & Others Rs 333.10 million Tax Includes Provision for Current Tax Rs 34.10 million Deferred Tax Rs 21.50 million Fringe Benefit Rs 4.10 million EPS is Basic Status of Investor Complaints for the quarter ended March 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 02 Complaints disposed off during the quarter 02 Complaints unresolved at the end of the quarter Nil 1. The above results have been taken on record at the meeting of the Board of Directors of the Company held on April 24, 2006. 2. The Board of Directors at the above meeting has declared third interim (quarterly) dividend of Rs 2/- per fully paid up equity share of Rs 2/- each for the Financial Year 2005-06. The aggregate of interim (quarterly) dividends paid represents 300% for nine months. 3. In view of the sharp volatility in Rupee during the nine months, realised / unrealised exchange fluctuation differences accounted in accordance with AS 11, are disclosed separately. 4. During the quarter ended March 31, 2006, 733130 equity shares of Rs 2/- each fully paid up were issued and allotted pursuant to the exercise of stock options under HCL Infosystems Ltd. - Employee Stock Option Schemes. 1448615 Equity shares have been allotted under stock options during the nine months 2005 - 06. 5. The auditors of the Company have carried out a ' Limited Review ' of the standalone unaudited financial results for the quarter ended March 31, 2006 in terms of Clause 41 of the Listing Agreement with Stock Exchanges. 6. Tax expense for the current quarter has been estimated subject to audit and final computation of various tax adjustments. It does not take into account tax issues disputed by the Company. 7. Consolidated results include results of 'HCL Infinet Ltd', the wholly owned subsidiary of the Company and Microcomp Ltd., the wholly owned subsidiary of HCL Infinet Ltd. 8. The Company on a standalone basis operates in a single segment. 9. Figures for previous periods have been regrouped and rearranged to conform with the relevant current period classification.

KEY RATIOS

PARTICULARS	30.06.2005	30.06.2004	30.06.2003
Debt Equity Ratio	0.18	0.26	0.36
Long Term Debt Equity Ratio	0.06	0.22	0.23
Current Ratio	1.36	1.37	1.48
TURNOVER RATIOS
Fixed Assets	19.81	14.94	15.69
Inventory	11.26	12.17	16.40
Debtors	5.92	5.93	6.98
Interest Cover Ratio	11.70	10.07	6.54
Operating Profit Margin (%)	8.60	10.03	7.13
Profit Before Interest and Tax Margin (%)	8.27	9.36	6.46
Cash Profit Margin (%)	7.08	8.61	5.96
Adjusted Net Profit Margin (%)	6.75	7.94	5.28
Return on Capital Employed (%)	33.21	31.42	24.19
Return on Net Worth (%)	32.08	33.64	26.84

STOCK PRICES

Face Value	Rs. 2/-
High	Rs. 172.70
Low	Rs. 171.00

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Subject was incorporated on 17^th April 1986 in New Delhi having Company Registration Number 23955.

Subject was previously known as HCL Hewlett-Packard and was promoted by a group of technocrats. In May 1986, the company took over Hindustan Computers, Hindustan Reprographics, Hindustan Instruments and Indian Computer Software Company.

In 1991, the company entered into a joint venture with Hewlett-Packard Company, USA, for combining the computer manufacturing, marketing and servicing activities of the company and Hewlett Packard India Private Limited.

Subject has been accredited with ISO 9001 certification for its manufacturing processes and it has also received SEI CMM Level IV accreditation for its software development processes. It has recently been awarded the MAIT Level II recognition for business excellence.

The company manufactures computer systems at Noida, Uttar Pradesh and computer peripherals at Chennai. It also manufactures multi-user super-minis and engineering workstations, the technology for which is being provided by Hewlett-Packard Company, USA. It came out with a rights issue in November, 1992 to meet the cost of setting up a test and repair centre; acquire the computer division from Hewlett-Packard India Private Limited and to modernise the computer manufacturing facilities. 

In 1997-98, the company acquired the business of HCL Infosolutions, HCL Peripherals, and the customer support activities of HCL office Automation Limited. In 1998-99, it entered into a relationship with Samsung, Korea to market and support their range of key telephone systems. It also tied up with Novell to become the largest Novell authorised support centre. 

In 1999-2000, the most significant development has been the formation of its internet subsidiary, HCL Infinet a value added B2B and B2C internet services provider. 

The company had received SEI CMM Level IV accreditation for its software development processes and the ISO 9001 certification for its manufacturing processes. It has recently been awarded the MAIT Level II recognition for business excellence. 

The company also expanded its distribution network to become the largest hardware vendor with more than 75 distributors in 42 point of purchase (POP)/locations and more than 1000 sales outlets. The company also expanded its operations internationally, launching operations in Bangladesh in September 2000. 

During the year 2000-2001, the company bagged a major networking order from Indian Overseas Bank involving implementation of Wide Area Network in 11 cities covering 200 branches. 

The company has won the MAIT award for Excellence in Exports-Technical Services for the year 2001-02. 

The company has tied-up with Pitney Bowes, a Fortune 500 company and global provider of integrated mail messaging and document management solutions, to provide world class mass mailing solutions. 

The company being a premier house for hi-tech support in the filed of information technology had understandably transformed into a 'home name' for corporate servicing a large clientele in the country.

The alliance with Sun Microsystems India Private Limited forged during 2002, to distribute the complete line of Sun Enterprises Products, would surely enhances the spectrum of services provided by the company to the customer.

Subject is one of the pioneers in the Indian IT market , with its origins in 1976. For over quarter of a century, we have developed and implemented solutions for multiple market segments, across a range of technologies in India. They have been in the forefront in introducing new technologies and solutions. The highlights of the HCL saga are summarised below:

Milestone

Year Highlights

1976

1976 - Foundation of the Company laid

- Introduces microcomputer-based programmable calculators with wide

acceptance in the scientific / education community

1977

1977 - Launch of the first microcomputer-based commercial

computer with a ROM -based Basic interpreter

- Unavailability of programming skills with customers results in HCL developing

bespoke applications for their customers

1978 - Initiation of application development in diverse segments such as textiles,

sugar, paper, cement , transport

1980 - Formation of Far East Computers Ltd., a pioneer in the Singapore IT market,

for SI (System Integration) solutions

1981

1981 - Software Export Division formed at Chennai to support the bespoke

plication development needs of Singapore

- HCL launches an aggressive advertisement campaign with the theme ' even a typist can operate' to make the usage of computers popular in the SME (Small & Medium Enterprises) segment. This proposition involved menu-based application for the first time, to increase ease of operations. The response to the advertisement was phenomenal.

1983 - HCL develops special program generators to speed up the development of

applications

- Bank trade unions allow computerisation in banks . However , a computer can only run one application such as Saving Bank Current account , Loans etc.

1985 - HCL sets up core team to develop the required software - ALPM ( Advanced Ledger Posting Machines ) . The team uses reusable code to reduce development efforts and produce more reliable code . ALPM becomes the largest selling software product in Indian banks

-HCL designs and launches Unix- based computers and IBM PC clones

- HCL promotes 3rd party PC applications nationally Zonal offices of banks and

general insurance companies adopt computerization

1986 - Purchase specifications demand the availability of RDBMS products on the

supplied solution (Unify, Oracle). HCL arranges for such products to be ported

to its platform.

- HCL assists customers to migrate from flat-file based systems to RDBMS

- HCL enters into a joint venture with Hewlett Packard

- HP assists HCL to introduce new services: Systems Integration, IT consulting,

packaged support services ( basicline, teamline )

1991 - HCL establishes a Response Centre for HP products, which is

connected to the HP Response Centre in Singapore.

- There is a vertical segment focus on Telecom, Manufacturing and

Financial Services

- HCL acquires and executes the first offshore project from IBM Thailand

1994 - HCL sets up core group to define software development methodologies

-Starts execution of Information System Planning projects

1995 -Execution projects for Germany and Australia

- Begins Help desk services

1996 - Sets up the STP ( Software Technology Park ) at Chennai to execute software

projects for international customers

- Becomes national integration partner for SAP

-Kolkata and Noida STPs set up

1997 - HCL buys back HP stake in HCL Hewlett Packard

1998 - Chennai and Coimbatore development facilities get ISO 9001 certification

- Acquires and sets up fully owned subsidiaries in USA and UK

1999 - Sets up fully owned subsidiary in Australia

- HCL ties up with Broadvision as an integration partner

2000

-Sets up fully owned subsidiary in Australia

- Chennai and Coimbatore development facilities get SEI Level 4 certification

- Bags Award for Top PC Vendor In India

2000 - Becomes the 1st IT Company to be recommended for latest version of ISO 9001

: 2000

- Bags MAIT's Award for Business Excellence

- Rated as No. 1 IT Group in India

2001

-Launched Pentium IV PCs at below Rs 40,000

2001 -IDC rated HCL Infosystems as No. 1 Desktop PC Company of 2001

-Declared as Top PC Vendor by Dataquest

-HCL Infosystems & Sun Microsystems enters into a Enterprise Distribution

Agreement

2002 - Realigns businesses, increasing focus on domestic IT, Communications &

Imaging products, solutions & related services

2003

- Became the first vendor to register sales of 50,000 PCs in a quarter

- First Indian company to be numero uno in the commercial PC market

-Enters into partnership with AMD

-Launched Home PC for Rs 19,999

2003 - HCL Infosystems' Info Structure Services Division received ISO 9001:2000

certification

-Launches Infiniti Mobile Desktps on Intel Platform

- Launched Infiniti PCs, Workstations & Servers on AMD platform

BUSINESS

Subject is engaged in manufacturing of computer systems and computer peripherals.

It also manufactures multi-user super-minis and engineering workstations, the technology for which is being provided by Hewlett-Packard Company, USA. It came out with a rights issue in November 1992 to meet the cost of setting up a test and repair centre; acquire the computer division from Hewlett-Packard India Private Limited; and to modernise the computer manufacturing facilities.

Generic Names of Three Principal Products/Services of Company (As per monetary terms) are :

Item Code No.	Product Description
847100	Computers
847193	Computer Peripherals
852490	Software

It exports SUN, ENC, PCs, Motherboards, Hardware Designs, Softwares and Consultancy Services to ASEAN, Europe, Japan and USA.

It imports Desktop Computer System, Keyboard X86 Servers, Moniter, Networking Hubs and Switches, Network Passive Components, KIOSK, Thin Client, Chips, IC’s, Assemblies and Softwares from ASEAN, Europe, Japan and USA.

It is in trade terms with:-

· Cubix control Systems Private Limited

· Esteem Industries

· K. K. Nag Limited

· Acem Tech

· Avon Data Cables Private Limited

· Polyteck Packings (India) Private Limited

· Sri Kaleeswarar Industries

· Divya Automats

· Coromandel Electronics

· Electronic Consultants

· Endura Metal Finishers

· Plastic Coats

· Shakthi Data Cables

· Electronic Fasteners

· Nithya Packaging

PERFORMANCE :

The consolidated revenue of the Company was Rs. 77840.000 millions as against Rs.44120.000 millions in the previous year. The consolidated profit before tax was Rs. 2960.000 millions as against Rs. 2120.000 millions in the previous year. 

 The gross revenue and profit before tax of the Parent Company were Rs. 19670.000 millions and Rs. 1490.000 millions respectively. 

 The gross revenue and profit before tax for the previous year were Rs.15220.000 millions and Rs.1280.000 millions respectively. 

 The Directors are pleased to recommend final Dividend @ 100% on the fully paid-up equity shares of Rs.2/- each for the financial year ended on 30th June, 2005. During the first nine months, three interim (quarterly) dividends of 70% each were declared taking the total dividend for the year 2004-05 to 310%. 

QUALITY INITIATIVES

During the year 2004-05 under review significant milestones were achieved on the quality initiatives front. Annual Customer Satisfaction Survey for all their business divisions was conducted. Apart from getting the highest response rate in the surveys over the last 5 years, they also got the highest Customer Satisfaction levels. Customer loyalty has improved, with more than 76% customers rating Very Likely' to continue to purchase products from the Company. Similarly in other areas like product quality, delivery of machines and support the customers have given the Company the highest ratings over the last 5 years. 

 The Company is continuing to send Machine Uptime Status Reports to their Key Customers. The support reach across the country of the Company has increased to more than 260 locations and the Company continues to be ranked No. 1 in PCs.  

Some of the major distributors of the company are:

· Indian Projects and Sales, WZ-29, 2^nd Floor, Nangli JALIB, B1-Janakpuri, New Delhi - 110058

· Netfinity Technologies (India ) Private Limited

PROFILE

Subject was founded in the year 1983 has established itself as a leading manufacturer of computer peripherals in India. Subject is a group company of HCL Infosystems Limited (turnover Rs. 43000 millions), the No. 1 hardware manufacture in India. With a humble turnover of Rs. 20.000 millions in the year of inception nearly 2 decades ago, today subject has established itself as a leading manufacturer of computer peripherals in India and is poised to touch the rupees five thousand crores mark by the year 2002.

Subject being a premier house for hi-tech support in the field of information technology has understandably transformed into a ‘home name’ for corporate, servicing a large clientele in the country.

With such a profile one more attempt to gear up and aggrandise the silhouette of service and success, is made by the launch of a product line of a wide range of modular enclosures and accessories for networking and communication devices under the banner of HCL Peripherals. (A unit of HCL Infosystems Limited).

PRESS CLIPPINGS

New Delhi, June 2, 2004

The company, India’s premier information enabling company, maintained its number one position in he Desktop PC segment for the first quarter of 2004.

According to the recent IDC report, the company became the first company in the Indian PC market of cross one lakh unit milestone. The company leads the market ahead of the two MNCs, with a market share of 13.3% up from 10.6% for quarter four of 2003.

Mr. George Paul, Vice President – Marketing of the company, said “The IDC results bear testimony to the consumers increasing confidence in the company to meet their diverse IT needs. In turn, had committed there selves to deliver better value and quality in products. The recent positive announcements by the government in excise and custom duty reduction on computers had increased the share of branded PCs in India. They had witnessed an increase in the growth on branded PCs”.

Comparing quarter one of 2003 to quarter one of 2004, the company’s market, the company sold almost 83000 units. In this segments, the company’s market share increased from 10.4% to 15.3% in the same period last year, while the nearest MNC brand had a market share of only 10.25. In this period the company registered a massive growth of 78% in market share.

In the consumer PC market the company registered a growth of 148.4% for the same period last year. This is the highest growth by any manufacturer in India in this period.

“They have been rated as number one PC manufacturer for the third consecutive year in the commercial PC segment by IDC. The reports from industry experts affirm the vast potential they had to spread the power of computing across the length and breath of the country”, concluded Mr. Paul.

The company recently bagged orders for its enterprises business from Indian Overseas Bank, Chennai, Corporation Bank, Bangalore, Kerala Forestry, LIC, Mumbai, AP Land, Hyderabad, Commercial Taxes, Kerala, Tamilnadu Urban Development Project, Chennai, Hartron Chandigarh, Oriental Bank of Commerce, Gujarat Aloys, Tata Teleservices, AP Transport and Blazeflash, Hyderbad. The company also received orders for large systems integration projects from BSNL Chandigarh and the Haryana office.

The positive announcements by the government in excise and custom duty reduction on computers announced earlier this year will encourage a buyout growth of branded PCs. The company was the first company to pass on the benefits in terms of a cost reduction to the consumers. The company redefined the print point of the branded PCs in the Indian desktop market by announcing the availability of the EzeeBee range priced below the Rs. 0.015 million. EzeeBee is designed and manufactured to give maximum ralibility and compatibility across applications and different operating systems.

The company recently launched the HCL Beanstalk Neo, which has been specially developed by the company utilizing the latest Microsoft Windows XP Media Centre operating systems and Intel’s Hyper Threading technology. This latest product from the company stable is available across the country through the company’s channel network.

The company’s fixed assets of important values includes goodwill, freehold land, leasehold land, buildings, plant and machinery, computers, printers/scanners/UPS/CVT, photocopiers, EPABX systems, air conditioners, furniture, fixtures and office equipments and vehicles.

Subject operates from caption rented office premises. Caption factory premises of area admeasuring 1000 sq.ft. is also owned by the company.

PRESS RELEASE:

HCL FORMS A STRATEGIC ALLIANCE WITH BULL TO LAUNCH A NEW RANGE OF SCALABLE ENTERPRISE CLASS SERVERS ON OPEN ARCHITECTURE

Technology collaboration to address Mission Critical, High Performance Computing Market

New Delhi, October 24, 2005 -- HCL, India's premier information enabling company, today announced a strategic alliance with Bull, a leading Europe based company, to launch HCL scalable Enterprise Class Servers on Open Architecture. The new HCL servers will provide customers the proven capability and mainframe-class reliability of the traditional proprietary RISC platforms on Open Architecture at a much lower total cost of ownership.

"The biggest challenge at the core of the enterprise has always been to gain the performance, headroom and reliability of high-end 64-bit computing, without the high cost and complexity of proprietary RISC architecture." said George Paul, Executive Vice President - Marketing at HCL "This partnership will allow us to offer their customer a complete range of solutions for the Core of the Enterprise on Open Architecture and help them move beyond proprietary RISC platforms."

Today enterprises are looking to break free from the barriers of proprietary RISC platforms and now with more than 5000 validated applications available on Itanium® both on windows and linux, enterprises finally have enlarged options.

The partnership will enable HCL to address high-end requirements of its customers for the core of the enterprise, in areas such as large-scale databases, ERP applications, Data centres, High Performance Computing requirements of Scientific and Research Segment etc. It will enable Bull to expand the geographical market reach of its technologies, establishing its presence through HCL's extensive network of over 170 offices and 300 service centres spread across the country.

The new range is based on Bull's NovaScale® servers, powered by Intel® Itanium® 2 processors and Bull's FAME (Flexible Architecture for Multiple Environments) technology. Using market-standard building blocks, the FAME architecture represents a technological breakthrough for high-end, mission-critical servers, delivering significant improvements in price/performance.

This launch further strengthens HCL's Infiniti Global Line Servers, which has fast emerged as a preferred brand amongst a cross-section of markets in India including Manufacturing, Telecom, Finance and Banking, the Government, Defence Forces and Internet Service Providers.

Notably, HCL has shown phenomenal growth in server segment by registering a market share of 19.6% for calendar year 2005. This launch is yet another demonstration of the company's strong focus on the Server Business and its commitment towards the Indian Customers by providing the right technology, at the right time, and at the right price point.

While in Delhi and commenting on the announcement, Michel Lepert, Executive Vice President and General Manager of the Products and Systems Division at Bull, said: "India is a high-growth market with a strong interest in new technologies such as the ones built into their NovaScale® servers. They are totally committed to supporting HCL, and given the work that they have already done together to move the partnership forward they are confident that HCL customers will immediately benefit from very competitive high-end solutions".

Mr Surendra Arora, Director - Customer Solutions Group, South Asia, Intel said - 'Intel has worked with the industry over the last six years to develop a rich eco-system of highly scalable and open standard solutions. They have a large number of OEM's, operating systems and 5000 applications running Intel® Itanium® processor family-based platforms. They are now very pleased to collaborate with HCL Infosystems and Bull, a member of the Itanium(r) Solutions Alliance, to enable the Indian IT customers with mission critical computing needs to benefit from the outstanding performance, reliability, scalability and availability delivered by Itanium(r)-based systems.'

To share the benefits enterprises can derive from this union, HCL, Intel & Bull, have jointly organised exclusive seminars in Delhi, Bangalore & Mumbai for CIOs this week.

Bull NovaScale® servers have gained IT market recognition and won large customers, both end-user IT organizations and OEMs. They are used notably as data base servers and application servers as well as in HPC (High Performance Computing) applications. A prime example: NovaScale® servers are the foundation of the largest scientific computer ever delivered in Europe, which is currently under installation and will be operational by the end of 2005.


About Intel

Intel, the world's largest chipmaker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.


About Bull

Bull designs and develops servers, software and services for an open environment, integrating the most advanced technologies. It brings to its customers its expertise and know-how to help them in the transformation of their information systems and to optimize their IT infrastructure and their applications.

Bull is particularly present in the public sector, banking, finance, telecommunication and industry sectors. Capitalizing on its wide experience, the Group has a thorough understanding of the business and specific processes of these sectors, thus enabling it to efficiently advise and to accompany its customers. Its distribution network spreads over 100 countries worldwide.


About HCL Infosystems

HCL Infosystems, India's premier information enabling and integration company offers its customers technology solutions across multiple platforms. It has partnerships with some leading global players like Intel, AMD, Toshiba, Ericsson, Microsoft, Nokia and Sun Microsystems among others.

HCL Infosystems has direct customer service centres across 300+ locations and two ISO 9001 certified state-of-the-art manufacturing facilities. With a mission to provide world-class information technology solutions and services to enable its customers to serve their customers better, HCL Infosystems is forever setting new standards of IT in the country. For more information please visit www.hclinfosystems.in


About HCL Enterprise

HCL Enterprise is a leading Global Technology and IT enterprise with annual revenues of $2.7 billion (Rs.12, 0000.000 Millions . The HCL Enterprise comprises of two companies listed in India, HCL Technologies & HCL Infosystems. The 3-decade-old enterprise, founded in 1976, is one of India's original IT garage start ups. Its range of offerings span Product Engineering, Technology and Application Services, BPO, Infrastructure Services, IT Hardware, Systems Integration, and distribution of technology and telecom products. The HCL team comprises of 30,000 professionals of diverse nationalities, who operate from 15 countries including 300 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms. For more information please www.hcl.in

AMD AND IT MINISTRY UNVEIL AFFORDABLE COMPUTER TO PROMOTE 50x15 VISION IN INDIA

-IT Minister Thiru. Dayanidhi Maran unveils a key milestone for AMD's Global 50x15 Program in India with affordable AMD-powered PC from HCL with support for Gunuine Windows® XP Starter Edition-

New Delhi, October 13, 2005 -- Advanced Micro Devices Inc. (NYSE: AMD) and the Ministry of Communications and Information Technology, in association with HCL and Microsoft, today unveiled a long-term vision to accelerate internet penetration in India and make affordable computers a reality here. As an important step in realizing AMD's global 50x15 vision, AMD in association with HCL, the leading Indian computer manufacturer, announced the availability of India's most affordable home computer for its value, by offering a ready-to-use PC for Rs.9,990/-*. This HCL PC is also available bundled with Microsoft Windows XP Starter Edition at Rs.11,240/-*.

50x15 is AMD's long-term commitment to enable 50 percent of the world's population with affordable Internet access and computing capabilities by the year 2015. AMD will be working to enable various computing platforms to address the needs of India, a core region for the global 50x15 initiative. These platforms, based on AMD's x86 microprocessors, will address key requirements such as affordability, Internet readiness, wireless capability, low-power usage, dust-resistance, security, and ease-of-use. AMD and a growing network of partners, including Microsoft and HCL, are delivering innovative solutions in high-growth markets such as India that empower consumers to lead better lives. To mark the importance of India's role in meeting this challenge, AMD has extended an invitation to Thiru. Dayanidhi Maran, Minister of Information, Technology and Communications, to join a newly formed 50x15 global advisory committee. The committee comprises some of the world's leading digital inclusion experts from industry, government, academia and the non-profit sector, all of whom will help guide the worldwide 50x15 program over the next ten years.

Thiru. Dayanidhi Maran unveiled the low-cost PC, based on an x86 1600 MHz processor from AMD, in New Delhi with Mr. Ajay Marathe, corporate vice president, AMD, and president, AMD India Ltd.; Mr. Ajai Chowdhry, chairman and CEO, HCL Infosystems Ltd.; and, Ms. Neelam Dhawan, Managing Director, Microsoft India.

Thiru. Dayanidhi Maran, who has championed the cause of affordable computing for the masses, said, "I am very happy that AMD has taken this initiative to increase Internet penetration and enable a computer with AMD's x86 1600 MHz processor at this price point. Along with affordable broadband solutions from BSNL at Rs. 250 per month, and with Microsoft Windows XP Starter Edition, this PC can be used as a vehicle to significantly increase broadband penetration in India. AMD's 50x15 vision represents AMD's commitment to develop technology solutions designed specifically to meet India's needs. All of these developments not only further the cause of the National Common Minimum Programme (NCMP), but also help to bridge the knowledge gap between different socio-economic groups to better prepare them for the information age. I am very excited about the possibilities this announcement opens up for all Indians."

AMD's Mr. Marathe, who has been personally involved in implementing AMD's 50x15 initiative in India, said "This PC is an important step in the realization of the Honourable IT Minister's and AMD's joint vision to provide affordable computing and internet connectivity to the Indian people. AMD has taken a leadership role with 50x15 globally, and this initiative is just one example of how they are turning this vision into reality here on the ground in India. AMD, HCL, and Microsoft, along with the help of players that represent the entire PC ecosystem, have demonstrated true partnership in developing a computer that is ready for commonly used applications. Importantly, through AMD's 50x15 initiative and their Indian partners, they are committed to sustainable ecosystem support that will continue delivering affordable solutions that address Indian users' future needs in computing, multimedia, and connectivity."

Low-cost computing platforms introduced in India must incorporate three critical features to be viable - sustainable ecosystem support, affordability, and availability of product and service. With the introduction of this solution from HCL, based on AMD's processor, customers can get a computer that offers:
a) Sustainable ecosystem support, backed by AMD's technology for affordable computing solutions - a 1600 MHz x86 processor from AMD will allow users to enjoy the functionality of a typical PC, such as basic computing, browsing on the internet, CD-ROM usage, multimedia applications such as games, and broadband connectivity. Users can also add other options based on their specific requirements.
b) An affordable package - under Rs.10,000/-
c) Availability - products and service available across the country at authorized HCL resellers.

Speaking at the launch, Mr. Chowdhry of HCL Infosystems said, "HCL has been at the forefront of expanding PC penetration across India, and they are pleased to partner with AMD in enabling this PC under Rs.10,000. They believe it will result in many more Indians to owning a computer and benefiting from access to Information and Communication. With the introduction of this PC, HCL has once again reinforced its commitment to ensure that the power of computing reaches the common man. This is yet another initiative to reaffirm HCL's commitment in making the dream of 'PC in every home' a reality. Furthermore, with the bundled offer of Microsoft Windows Starter Edition, first-time home PC users by paying a little extra can benefit from the support for a wide range of applications as well as local language interface."

Ms. Dhawan of Microsoft India said "Microsoft® Windows® XP Starter Edition is part of Microsoft's commitment to the development of digital inclusion and they intend to provide access to technology for more Indian homes through this initiative by AMD and HCL. Microsoft is pleased to be part of this initiative with AMD and HCL, and to bring to customers the advantage of reliability and security that comes with buying genuine Microsoft software. "

*The computer is available through HCL's nationwide network of authorized resellers at Rs.9,990, and features AMD's x86 1600 MHz processor, 128 MB RAM, 40 GB Hard Disk, 15 inch Digital Color Monitor, 52x Optical Drive, keyboard, scroll mouse, and Linux. This computer is also available bundled with Microsoft Windows XP Starter Edition at a cost of Rs.11,240/-. Local taxes, Handling & installation charges and levies are applicable, but not included.


About 50x15

AMD's 50x15 initiative is a bold and far-reaching effort to develop new technology and solutions that will enable affordable Internet access and computing capability for 50 percent of the world's population by the year 2015. With the global population estimated to reach 7.2 billion people in 2015, there is tremendous potential for 50x15 to bring billions of people into the digital age. More than just goodwill, 50x15 is about fostering long-term economic progress and investment within high-growth and developing markets in ways that benefit a wide range of people and businesses. AMD and a growing network of partners are delivering innovative technology solutions that empower people around the world to improve and change their lives.


About Intel

AMD (NYSE:AMD) designs and produces innovative microprocessors, Flash memory devices and low-power processor solutions for the computer, communications and consumer electronics industries. AMD is dedicated to delivering standards-based, customer-focused solutions for technology users, ranging from enterprises and governments to individual consumers. For more information visit www.amd.com.


About Bull

Bull designs and develops servers, software and services for an open environment, integrating the most advanced technologies. It brings to its customers its expertise and know-how to help them in the transformation of their information systems and to optimize their IT infrastructure and their applications.

Bull is particularly present in the public sector, banking, finance, telecommunication and industry sectors. Capitalizing on its wide experience, the Group has a thorough understanding of the business and specific processes of these sectors, thus enabling it to efficiently advise and to accompany its customers. Its distribution network spreads over 100 countries worldwide.


About HCL Infosystems

HCL Infosystems, India's premier information enabling and integration company offers its customers technology solutions across multiple platforms. It has partnerships with leading global players such as Intel, AMD, Toshiba, Ericsson, Microsoft, Nokia and Sun Microsystems among others. HCL Infosystems has direct customer services center across more than 260 locations and two ISO 9001 certified state-of-the-art manufacturing facilities. With a mission to provide world-class information technology solutions and services to enable its customers to serve their customers better, HCL Infosystems is forever setting new standards of IT in the country. For more information, please visit www.hclinfosystems.in. HCL Infosystems has retained its leadership position in the PC business for several years in a row. Recent DATAQUEST Top20 Report 2005 rated HCL Infosystems as the largest PC manufacturer in India with market share of over 13.7% in the 'PCs and Notebooks' segment.


About Microsoft

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software for personal and business computing. For more information visit www.microsoft.com.

AMD, and the AMD Arrow logo, are trademarks of Advanced Micro Devices, Inc., USA. HCL is a trademark of HCL Infosystems, India. Microsoft, Windows and Microsoft Windows XP Starter Edition are trademarks of Microsoft Corp. in the United States and/or other countries. Other names are for informational purposes only and may be trademarks of their respective owners.

HCL AND ZEE - DISH TV TEAM UP TO TAKE DTH TV TO ITS NEXT LEVEL OF GROWTH IN INDIA

A significant step in realizing HCL Infosystems larger Digital Lifestyle strategy

New Delhi, May 03, 2006 -- In what could be the next big boost in the evolving Direct-to-home (DTH) TV segment, Dish TV - India's first DTH service provider has teamed up with HCL Infosystems - nation's premier information technology enabler in an multiyear partnership, wherein Dish TV would be leveraging HCL's undisputed distribution & service support reach to widely expand its base in the nation. While Dish TV aims to increase its distribution reach with this tie-up, it would enable HCL Infosystems to offer a revolutionary digital entertainment service as part of its Digital Lifestyle portfolio.

Announcing the tie-up, Mr Ajai Chowdhry, Chairman & CEO , HCL Infosystems Ltd., said, "Continuing their quest to bring a digital lifestyle revolution in India and its legend of tying up with leaders, they are sure that this tie-up would enhance the accessibility of DTH in India - thus taking this global standard of broadcast entertainment to even remote regions of the nation, which do not have any access to traditional cable TV system. Coupled with over three decades of experience in spearheading pioneering solutions in the ICT domain, they hope that they would be able to aptly back Dish TV in defining the next generation of TV viewing in the nation."

Commenting on its tie-up with HCL Infosystems, Mr. Jawahar Goel, Addl. Vice Chairman, Essel Group of Industries said, "They are very happy to partner with HCL, India's premier information technology enabler. They have partnered HCL because of its undisputable strength in offering marketing & distribution support for technology brands. They are confident that HCL will bring the same value as they have brought to some of the other leading global brands in India"

DTH - or Direct-to-Home TV, with its digital transmission capabilities and host of interactive features such as 'Movies-on-Demand', 'multi audio feed' and others, is increasingly becoming the new global standard of TV viewing & distribution. Launched in India in 2004, Dish TV was the first and the only private DTH service provider at present.

Indian market is at the threshold of transforming from 'analog' to 'digital' environment. Indeed, as per the estimates of Media Partners Asia ( MPA) India would emerge as Asia's largest market for DTH, overtaking markets such as Japan as early as 2008. The fact that Dishtv has experienced a ten fold increase in its subscriber acquisition rate across India, in last one year further substantiates the growing emergence of this revolutionary broadcasting medium in the country.

Announcing their aggressive expansion plans and how HCL fits in as a strategic partner, Mr. Sunil Khanna - CEO, Dishtv India said, "After successfully drafting the first chapters of DTH revolution in India, they are now all set for an aggressive expansion - both in terms of reach as theyll as technology. In this perspective, they feel that HCL - with their proven capability to market leading global digital technology brands and pan-India distribution & support network, would be able to provide us right impetus & inputs to continue their leadership in this domain. Through this alliance, they aim to expand the choices available to Indian viewers in terms of the channels they want or don't want and provide them the high quality digital pictures etc. They are trying to bring a true digital TV experience to Indian quality conscious consumers."

To be launched in a phased manner, HCL would be working to strengthen the presence of Dish TV in around 13 key cities in the first phase. This would be followed by identifying newer markets, through HCL's established capability & presence in even the remotest corners of the nation. HCL would be organizing direct-to-customer initiatives & roadshows to enable customers experience the digital DTH difference!


About DishTV.

Dish TV - India's first Direct-to-Home entertainment service was launched in October 2003 by Essel Group - the parent company of Zee Network. Being Direct-to-Home, it allows users to access a variety of television channels digitally, directly from the satellite without a local cable service provider. All viewers can enjoy the true digital experience of watching 130 television and audio channels with digital quality picture and stereophonic sound. The viewers get a complete family entertainment service through uninterrupted viewing of Movies, Historical and Mythological Channels, News, Cartoon programme for kids and much more at home.

DishTV has a vast distribution network of about 10000 dealers / distributors that spans the entire country. Dish TV today has 160 authorised dish care centres all across India with exclusive franchises in Delhi/NCR. Also to reach closer to the customers, all major consumer durable outlets in the cities are dishtv retailers today. It has in place a comprehensive subscriber management system that is accessible 24x7 through a toll free number 1-901-180-3474.


About HCL Infosystems

HCL Infosystems, India's premier information enabling and integration company offers its customers technology solutions across multiple platforms. It has partnerships with some leading global player like Intel, AMD, Toshiba, Ericsson, Microsoft, Nokia and Sun Microsystems among others.

HCL Infosystems has direct customer service centres across 300+ locations and two ISO 9001 certified state-of-the-art manufacturing facilities. With a mission to provide world-class information technology solutions and services to enable its customers to serve their customers better, HCL Infosystems is forever setting new standards of IT in the country. For more information please visit www.hclinfosystems.in


About HCL Enterprise

HCL Enterprise is a leading Global Technology and IT enterprise with annual revenues of US $2.9 billion The HCL Enterprise comprises two companies listed in India - HCL Technologies & HCL Infosystems. The 3-decade-old enterprise, founded in 1976, is one of India's original IT garage start-ups. Its range of offerings span Product Engineering, Technology and Application Services, BPO, Infrastructure Services, IT Hardware, Systems Integration, and distribution of technology and telecom products. The HCL team comprises 32,000 professionals of diverse nationalities, who operate from 15 countries including 300 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms. For more information please visit www.hcl.in

HCL Infosystems has reported consolidated revenue of Rs 32110.000 Millions (US$ 725.2 Mn) for the quarter ended 31st March 2006, grows at 60%.

PAT at Rs 844.000 Millions (US$ 19.1 Mn)

Investor Release Q3 FY '05-'06 (.pdf file)

Unaudited Financial Results for the Quarter ended 31st March, 06 (.pdf file)

New Delhi, April 24, 2006: HCL Infosystems Ltd, India's premier Information enabling company today announced its un-audited results for the quarter ended March 31, 2006.

The company has reported a consolidated revenue of Rs 32112.000 Millions (USD 725.2Mn) during the quarter ended March 31, 2006 as against Rs 20118.000 Millions (USD 454.3 Mn) in the corresponding quarter of the previous year, a growth of 60%.

Profit before tax for the quarter was Rs 1154.000 Millions (USD 26.1 Mn) as against Rs 831.000 Millions (USD 18.8 Mn) in the corresponding quarter of the previous year, a growth of 39%. Profit after tax was Rs 844.000 Millions (USD 19.1 Mn).

Revenue from the Computer Systems business was Rs 6822.000 Millions (USD 154.1 Mn) as against Rs 5370.000 Millions (USD 121.3 Mn) in the corresponding quarter of the previous year, a growth of 27%. Profit before interest and taxes was Rs 386.000 Millions (USD 8.7 Mn).

Revenue from the Telecommunication and Office Automation business was Rs 25252.000 Millions (USD 570.3 Mn) as against Rs 14668.000 Millions (US$ 331.2 Mn) in the corresponding quarter of the previous year, a growth of 72%. Profit before interest and taxes was Rs 715.000 Millions (USD 16.2 Mn).

Consolidated EPS for the quarter was Rs 5.02 (US$ 0.1) per share, grows at 27% from corresponding quarter of the previous year.

The Company has reported consolidated revenue of Rs 8302.2 crores (USD 1875.0 Mn) during the nine months ended March 31, 2006. Profit after tax was Rs 2103.000 Millions (USD 47.5 Mn).


The Board of Directors has declared a third quarterly Interim dividend of Rs 2/- per share (100 % on an equity share of par value of Rs. 2/- each).


Parent Company

The turnover of the company on "standalone" basis during the quarter ended March 31, 2006 was Rs 6822.000 Millions (USD 154.1 Mn) and the Profit after tax was Rs 34.5 crores (USD 7.8 Mn).

Conversion rate: 1 US$ = 44.28 INR

Announcing the results, Mr. Ajai Chowdhry, Chairman and CEO, HCL Infosystems, said, "After consistently sustaining leadership in the desktop segment for the last five years, HCL Infosystems is now going for greater momentum into the mobile computing market. It has already set new industry standards in this sector with the launch of nation's first-ever, segment-specific range of laptops…and there's more to follow. Further, continuing their journey of taking IT to the grass root levels of Indian economy, they have teamed up with international majors such as Intel & Microsoft to launch the next-generation of rural PCs - thus taking India further to the threshold of a IT revolution."


Key initiatives of the Quarter:

At a time when the notebook market in India is poised for rapid growth and the customers are demanding mobility and looking for ways to make it easier for him to work and live life in a much more flexible way, HCL has announced its foray into the mobile computing segment.

HCL launched the nation's first segment-specific range of laptops, christened as 'HCL Leaptops'. A range of laptops, each with distinct features to particularly suit the requirements of specific customer segments, available from a starting price of Rs. 27,490/- available to the consumers at easy EMI options.

A step forward in its pioneering efforts to take IT penetration to the rural areas of the country, and adding to its rich bouquet of IT solutions for India, HCL launched the Next-generation of rural PC, HCL Uday, in association with Intel, with features including one-touch data recovery, power-backup through car battery etc.

In the enterprise space HCL has bagged several prestigious orders from the private & public sector, banks, the education segment, insurance majors, Defence, leading corporates etc.

HCL has expanded the footprints of its Wireless broadband to 104 Wireless POPs. HCL has entered into a strategic relationship with Railtel, which has one of the largest fiber networks in India and covers more than 2000 locations. The wireless broadband expansion will cover metro access, current HCL POP locations and the new locations in a phased manner.

This expansion will enable HCL to offer Internet, IP VPN & Telephony services with better manageability and SLA delivery.

HCL has also entered into a strategic partnership with Aspect this quarter enables HCL to offer a complete Contact Center solution leveraging ICT technology. HCL's IP Contact Center Solution is integrated and executed on a turnkey basis covering Contact Center platform, Network services and complete IT infrastructure.

Toshiba notebooks continued to do well, bagging orders from a number of corporate customers. A number of new models like the 17" Quosmio were launched this quarter. A unique blend of entertainment and IT, the model works as a 17 " TV & DVD recorder, PC and music system and targets high net worth individuals. Other models launched this quarter include the Portege R 200, a 1.1 kg model for CXOs in addition to the range of products in the Satellite series.

The Imaging business scaled an all time high performance in this quarter. All product lines have shown remarkable growth and contributed to this success. The Company maintained its undisputed market leadership position in A3 MFP products in the year 2005 and strengthened its position in the projectors market. The Konica printers, AVSI and Plasma range maintained a consistent growth performance. The Company has bagged several orders from the Police Dept, Army, education segment & Corporates.

In the cellular handset business, the upsurge in the subscriber base continues unabated thus contributing to very encouraging sales for the company.


About HCL Infosystems
HCL Infosystems, India's premier information enabling and integration company offers its customers technology solutions across multiple platforms. It has partnerships with some leading global player like Intel, AMD, Toshiba, Ericsson, Microsoft, Nokia and Sun Microsystems among others.

HCL Infosystems has direct customer services center across 300+ locations and two ISO 9001 certified state-of-the-art manufacturing facilities. With a mission to provide world-class information technology solutions and services to enable its customers to serve their customers better, HCL Infosystems is forever setting new standards of IT in the country. For more information please visit www.hclinfosystems.in


About HCL Enterprise:
HCL Enterprise is a leading Global Technology and IT enterprise with annual revenues of $2.7 billion (Rs.12,000 cr). The HCL Enterprise comprises of two companies listed in India, HCL Technologies & HCL Infosystems. The 3-decade-old enterprise, founded in 1976, is one of India's original IT garage start ups. Its range of offerings span Product Engineering, Technology and Application Services, BPO, Infrastructure Services, IT Hardware, Systems Integration, and distribution of technology and telecom products. The HCL team comprises of 30,000 professionals of diverse nationalities, who operate from 15 countries including 300 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms. For more information please visit www.hcl.in

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 44.88
UK Pound	1	Rs. 83.07
Euro	1	Rs. 56.94

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		55

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions